Tractor market booming as new sales record looms
Tractor sales are on track to pass the 13,000 mark for the first time since the 1980s and set a new industry record, says Gary Northover.
THE year of the worst shock to the world’s economy since the Great Depression looks to be a record for tractor sales in Australia.
Sales in September were up 29 per cent on the same month last year and are now up 22 per cent for the year to date.
The ongoing demand for agricultural produce, combined with favourable weather conditions across the nation and supported by the federal government’s instant asset write-off program, are supporting record sales.
Previous record years have seen tractor sales of 12,000 achieved, this year looks like it will pass the 13,000 mark for the first time since the 1980s.
Activity across the states remains positive with the continued recovery in NSW the standout up a whopping 41 per cent on the same time last year and now sitting 30 per cent ahead for the year.
Victoria reported another strong month, up 27 per cent and now 22 per cent ahead year-to-date, while Queensland was up 22 per cent to be 14 per cent up for the year.
Western Australia sales were down due to some negative weather events and remains 4 per cent behind last year.
Sales in South Australia are back on track with another strong month after a poor 2019 to be now up 60 per cent year-to-date, activity in Tasmania remains strong, now 25 per cent ahead for the year.
The increase in sales numbers is again due almost entirely to the ongoing strength in the smaller end of the market supported by the IAWO scheme.
The under-40hp (30kw) range was up 71 per cent for the month and now sits 29 per cent ahead for the year to date.
The 40hp to 100hp (30-75kw) range was again up strongly 27 per cent now 22 per cent ahead for the year.
The 100hp to 200hp (75-150kw) category bounced, up 26 per cent and still up 31 per cent for the year-to-date while sales in the large 200hp-plus (150kw) range were again down another 23 per cent leaving this category 9 per cent behind year-to-date.
Demand for large tractors is being impacted by factors such as persistent drought in regions within Northern NSW and Southern Queensland and ongoing challenges being felt in the West. Further pressure is being felt as a result of recent price increases.
Sales of combine harvesters remain steady with most product now in place for the upcoming harvest season. The full-year picture is likely to be about 15-20 per cent down on last year.
Baler sales were again very strong, remaining up 38 per cent year-to-date while sales of out-front mowers were strong and still 15 per cent ahead of the same time last year.
The outlook for the industry remains positive, particularly after the recent budget announcements still to be approved in parliament.
Initiatives such as the extension of the IAWO program, incentives for apprenticeships and increased investment in R&D go a long way to building confidence in the industry.
The La Nina weather pattern being experienced across much of Australia, combined with historically low interest rates, augers well for the year ahead.
Results for the TMA Quarterly Dealer Business Sentiment Survey are now in and not surprisingly, the outlook expressed by dealers is quite positive.
For more details, visit tma.asn.au
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